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stoler42

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How do Rehabilitation Loans improve your Credit Report?
I have two Sallie Mae accounts from 2008 that are currently collecting interest and have been charged-off. I contacted them yesterday about settling options. They offered me a 1-time payment of $3600 (total account amount $5000) They also offered me the option to pay $1200 to get the account out of default and back onto my credit report as current. I would then make monthly payments until paid off. One of the factors of my credit scores :(TU 542 EQ 547 FICO 563) is I have a short credit history. Seeing this account goes back to 2008, in theory, this would improve my score greatly correct? Would it benefit my credit history age? I want to pay this off regardless, but my main goal is to improve my credit score. I don't mind paying more (Option 2) if it would improve my credit score overall.

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Top Contributor
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I would assume that it would help your credit. I am not real familiar with how these programs work, so don't take my word on this, but what you are saying does make sense to me. The money saved by paying a lump sum, may make that route more appealing though, there are other ways to build credit back up.

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